Generic Drug Pricing Under Scrutiny

U.S. regulators investigate the rapid increase in generic drug pricing.

A May 28 Fortune article discussed U.S. regulators placing generic drug companies under scrutiny. The U.S. Department of Justice (DoJ) is probing Sun Pharmaceuticals for information related to pricing and marketing of an unnamed drug. The subpoena comes amid a wider effort by U.S. regulators to investigate drastic increases in generic medicine prices over the last few years. The U.S. Department of Health and Human Services began investigating generic drug pricing in 2015 after prodding from U.S. Senator Bernie Sanders and Democratic Representative Elijah Cummings. The pair specifically called out antibiotic doxycycline hyclate 100 milligram, which doubled in price in just a year.

The DoJ’s antitrust division subpoenaed both Endo International Plc and Mylan last year for information on their doxycycline products. Sun Pharma, India’s largest drug maker and the world’s fifth-largest maker of generic medicines, is one of several companies selling doxycycline generics in the U.S. However, a statement issued in late May by the DoJ did not specify for which drugs they sought information. India’s Dr. Reddy’s Laboratories and U.S. firm Allergan, both makers of generics, were also subpoenaed last year regarding undisclosed products.

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